- The stock price of Ford Motor Company (NYSE: F) fell 1.03% today. This is why it happened.
The stock price of Ford Motor Company (NYSE: F) fell 1.03% today, going from a previous close of $15.02 to $14.86. Investors are responding negatively to Ford Motor Company announcing that several of its factories in North America will be shutting down for a few weeks in July and August due to the global semiconductor shortage.
Back in April, Ford said that the semiconductor shortage will cost the company $2.5 billion this year. And it will cause the company to slice its vehicle production in half during the second quarter.
“While we continue to manufacture new vehicles, we’re prioritizing completing our customers’ vehicles that were assembled without certain parts due to the industry-wide semiconductor shortage,” said Ford in a company statement.
The company’s assembly plant in Chicago — which manufactures the Explorer SUV — will be shutting down between the week of July 5 to the week of July 26. And then the plant will run two shifts during the week of August 2.
And Ford is going to shut down the production line for the F-150 pickup truck for a couple of weeks next month. This vehicle is manufactured at the assembly plant in Kansas City.
The assembly plant in Michigan — which recently started shipping the Bronco SUVs — will be shut down for 2 weeks in July due to a shortage of parts. This case is not related to the chip shortage though.
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